Skip to content

Rio Signs Deal With China’s Baowu for New Pilbara Iron Mine

  • New mine to cost Rio $1.3 billion and will keep output steady
  • JV needs shareholder vote because of Chinalco interest in Rio
Updated on

Rio Tinto Group has formed a joint venture with its biggest customer, Chinese state-owned giant China Baowu Steel Group Co., to develop a new iron ore mine in Western Australia’s Pilbara region.

Rio will take a 54% stake in the new Western Range mine, and Baowu will hold 46%. The mine will cost $2 billion of which Rio will provide $1.3 billion, and is expected to begin producing in 2025, Rio said in a statement Wednesday.